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Ecological Code.doc
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Article 262. General Environmental Requirements Applicable upon Conduct of Business and Other Activities within the National Nature Reserve in the Northern Part of the Caspian Sea

1. Works associated with the excavation and movement of earth may be allowed to be carried out upon special permission to be issued by the authorised government agency for study and use of subsoil.

2. The construction, assembly and dismantling of structures may not be carried out unless technologies enabling the collection of all kinds of pollutants are used.

3. If previously drilled wells are found within the limits of the contract area, a subsoil user must enter them on its balance sheet and conduct monitoring.

4. Emissions and discharges in the environment at all stages of oil operations shall not exceed the relevant permissible limits of emissions and discharges of pollutants.

5. There shall be prohibited to flare up fluids in the operation of wells unless an emergency threatens to occur.

6. The flaring of hydrocarbons during the testing of wells shall be minimised. Should the environmental review find the method specified in this paragraph as the safest to the environment, such method shall be used only under favourable weather conditions capable of dispersing the train of smoke, and the design of flares must ensure complete burning of hydrocarbons. If a well is located on the migration route of birds, organisational and technical steps shall be undertaken to prevent damage to the avifauna.

7. Air emissions shall be subject to control in compliance with the requirements of the legislation of the Republic of Kazakhstan, proven principles and methods accepted in international practice in the field of environmental protection upon the conduct of oil operations.

8. Within the limits of the national nature reserve in the northern part of the Caspian Sea, there shall be prohibited to discharge waste waters and waste, unless they are on the limited list of pollution-free or treated waste waters, including waters of the cooling and fire extinguishing systems and ballast waters discharged upon permission of the government agencies for environmental protection, use and protection of water resources, as well as for sanitary and epidemiological well-being of the population. The temperature of water discharged outside of the control point shall not exceed more than 5 degrees centigrade as compared to the average monthly water temperature during discharge of water over the past ten years.

9. Injection of drill waste into the subsoil shall be prohibited unless such waste has been preliminary neutralised in accordance with the project that had passed the state environmental review.

10. All actions to neutralise and store drill waste (sludge and solutions) that are not recycled in process and not injected into the subsoil shall be carried out at a special disposal site outside the borders of the national nature reserve in the northern part of the Caspian Sea. Such actions shall ensure that the construction of the disposal site must be completed by the time drilling operations will be launched, shall be carried out upon consultation with the environment protection authority.

11. A drilling platform (barge) and support ships must be equipped with a plant for treating and decontaminating waste waters and for collecting, storing and transferring waste waters to special ships or onshore receptacles. Proper facilities for collecting or treating (milling and pressing) litter or a facility for burning litter shall be envisaged.

12. When conducting any types of construction and other activities, explosion operations shall be prohibited in the water column and at the sea bottom. Explosion operations at the sea bottom can be carried out upon permission of authorised government agencies for environmental protection, use and protection of the aquatic fund, natural and man-made disasters and the study and use of the entrails.

13. There shall be prohibited to disturb nestling places of water fowls and near-water birds as well as blocking access to the spawning place of sturgeons.

14. No water may be withdrawn from the sea, unless water facilities are equipped with fish protectors. Such water facilities shall be equipped with technical facilities for continuous control over the performance of fish protectors.

15. Prior to the beginning of oil production, comprehensive environmental protection programmes, including actions to be taken to protect spawning grounds and reproduction of valuable game fish as well as the habitat of seals in the national nature reserve in the northern part of the Caspian Sea, shall be developed at the expense of a subsoil user.

16. Transport routes shall be selected in such a way so that their impact on marine mammals, fish and birds shall be prevented or abated.

17. There shall be prohibited to lay down railways, highways, main pipelines that have not been envisaged by the project, in the area of operation of special requirements.

18. For the purpose of conducting works in the shallow waters, there shall be used vehicles that allow preserving highly productive sea bottom populations and spawning grounds. If necessary, the use of special transport means with enlarged caterpillars, low-pressure tires, hover cushion that produce minimal destruction of the integrity of soils and vegetation and the existing biocenoses, shall be permitted in connection with the environmental monitoring.

19. Drill muds and oil-well solutions shall not contain substances, which are not envisaged by the engineering design. Should any other substances be used, a subsoil user shall agree such use with the authorised government agencies for environmental protection and the study and use of subsoil.

20. Drilling rigs shall be complete with combustion engines that meet ultimate carbon monoxide emission requirements of the International Marine Organisation.

21. Power plants shall be complete with combustion engines or double fuel turbines (diesel fuel - gas).

22. Prior to any offshore exploration works, a plan of works with due regard of the world practice, including the full environmental impact assessment, shall be prepared. The study of the baseline condition of the previously examined area, where intended business activities will be carried out, shall be based on the results of field studies that were conducted at least four years prior to the submission of the environmental impact assessment.

23. A compulsory element in any environmental impact assessment shall be the analysis of alternative scenarios, including avoidance of conducting exploration within the critical areas of offshore waters and the coastal zone.

24. In the water conservation area and in the near-shore shallow waters of the sea down to a depth of 5-10 metres, wells shall be drilled using electric and diesel driven drilling rigs powered from external networks. If the drilling is performed with a drilling rig equipped with a diesel generator and a diesel-driven generator, untreated gas emissions from those units shall be minimised.

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